November 5th is National Donut Day, November 10th is International Accountants Day and November 19th is National Play Monopoly Day.  There is a different “national day” for most days of the calendar year.

In Canada, November is Financial Literacy Month (“FLM”) with the Financial Consumer Agency of Canada (“FCAC”) coordinating efforts to strengthen the financial literacy of Canadians.

So, what is financial literacy?

Per Wikipedia, financial literacy is the “possession of the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources”.   The goal of FLM is to empower Canadians to manage money and debt wisely, to save for the future and to understand their financial rights and responsibilities.

In today’s age when Canadians are carrying more debt than ever and the cost of living continues to increase, “take charge of your finances” is an appropriate theme for FLM2019.  The four weeks of FLM2019 focus on budgeting, setting financial goals, being a smart financial consumer and borrowing wisely.  Budgeting requires you to know the timing and amount of income sources; what you are spending; and what your needs and priorities are and then allocating your monthly income to expenses.   The budget will have to account for savings required to meet your financial goals.  When determining financial goals, think of short term (1 to 3 months), mid-term (3 months to 1 year) and long term (1-5 years) goals.  Saving for holiday presents, an upcoming vacation or educational plans for your family are all goals that will require you to set aside a monthly amount in your budget.

Analyzing warranties available on major purchases, buying clothing that doesn’t require dry cleaning, and buying no-name brands will all make you a smarter financial consumer.  Finally, there is borrowing wisely.  Pay attention to the interest being charged on credit cards, ensure you make your monthly payments on time and try to pay more than the monthly minimum in order to pay down your debt quicker.

FCAC provides some great resources at https://www.canada.ca/en/financial-consumer-agency/programs/financial-literacy.html.  Take that first step to improve your financial literacy by doing some research and starting a budget.  If you find you are drowning in debt and need additional help, contact Taylor Leibow Inc. Licensed Insolvency Trustee for a free initial consultation.

By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee
CPA, CA, CIRP
Member and Secretary of the Ontario Association of Insolvency and Restructuring Professionals (OAIRP)
Canadian Association of Insolvency and Restructuring Professionals (CAIRP)